29 STATES ADD CONSTRUCTION JOBS BETWEEN MARCH AND APRIL AS STIMULUS-FUNDED PROJECTS AND HOUSING STARTS PICK UP

Published: May 22, 2010

Kansas and North Dakota Experience Highest Monthly and Annual Percentage Gains, While Maine and Vermont Top Monthly Job Losses for Construction Industry

Increases in stimulus-funded projects and growing demand for single family construction helped boost monthly construction employment in 29 states between March and April, according to a new analysis of federal employment figures released today by the Associated General Contractors of America. Despite the recent gains, 46 states and the District of Columbia lost construction jobs over the past twelve months.

"A gradual turnaround appears to be taking hold after years of construction employment declines," said Ken Simonson, the association's chief economist. "As more stimulus projects get underway and single-family housing starts pick up, we are likely to see the number of states with year-over-year increases grow."

Seasonally adjusted construction employment rose from March to April in 29 states, decreased in 18 and held steady in three, plus the District of Columbia, Simonson noted. He said that 17 of the states with monthly increases also added construction jobs from February to March. "It is encouraging that a solid majority of states added construction jobs in April and that more states are reporting back-to-back monthly gains," Simonson added.

Simonson noted that the number of states with year-over-year job gains rose to four, led by a jump of 8.1 percent, or 1,300 jobs, in North Dakota. Contractors also added jobs from April 2009 to April 2010 in Kansas, which added 3,800 jobs or 6.5 percent; Alaska, with a gain of 100 jobs or 0.6 percent; and Arkansas, with 200 jobs, or 0.4 percent.

Simonson cautioned that the slump is far from over, citing high vacancy rates, delays in passing highway and other infrastructure legislation, and declining state and local tax revenue. "Aside from temporary stimulus projects and a fragile housing market, demand for new construction remains depressed for the foreseeable future. As a result, construction employment won't return to pre-downturn levels for many months."